Question

Hank consumes hamburgers and fries in fixed proportions. Specifically, for every hamburger he consumes, he must...

Hank consumes hamburgers and fries in fixed proportions. Specifically, for every hamburger he consumes,
he must consume 2 orders of fries. If the price of a hamburger if $3 and the price of an order of fries is $1, how
many hamburgers and orders of fries does Hank consume each week if his weekly hamburger/fries budget is
$20?
Select one:
a. 5 hamburgers and 10 orders of fries
b. 5 hamburgers and 5 orders of fries
c. 4 hamburgers and 8 orders of fries
d. 3 hamburgers and 6 orders of fries

Homework Answers

Answer #1

( C ) is the correct answer of the above question

According to the question

The price of the hamburger is $3 and the price of the fries is $1. And for every hamburger he consumes 2 order of fries.

The budget of the consumer is $20.

Budget line

Money income = Price of commodity a × quantity of commodity a + price of commodity b × quantity of commodity b.

= 3 × 4 + 1 × 8

= 12 + 8

= $ 20

So the order of 4 hamburgers and 8 orders of fries fulfill all the condition s of the consumers .

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